Over 200 people came at short notice to hear shadow chancellor John McDonnell address a Haringey Labour Party meeting before Christmas.

McDonnell attacked the Tory austerity programme, saying that local government has borne the brunt of cuts, and warned of a second wave of austerity to come.

However, McDonnell also said that the fight against austerity can no longer be won by councils setting needs-based budgets, which he called illegal.

The role of Labour councils, he said, was to protect services and to lead the fight against cuts by mobilising communities to protest, demonstrate and occupy.

Contributions from the floor called for national support against the leadership of Haringey council over the HDV.McDonnell said the council had to listen to the rank and file members and local MPs “who are very clear on this, that is they don’t want this to go ahead”.

Anti-HDV campaigners are worried that the discredited council leadership intends to sign contracts with developer Lendlease that will lock in privatisation and sell-off plans.